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Words: | Submitted: Mon Jun 19 2006
... give security for costs was outside the arbitrator's statutory jurisdiction and application to be made to the Court. The s. 2GB of the HKAO bring fundamental changes to the law and practice of arbitration in Hong Kong. In s. 2GB(1), it provides "When conducting arbitration proceedings, an arbitral tribunal may make orders or give directions dealing with any of the following matters- (a) requiring a claimant to give security for costs of the arbitration;" The arbitrator now has the power to order the claimant to give security for cost. Importantly, the parties cannot contract out of this provision. Applications should now be made to the arbitrator and not to the court The Terms of the Order Security under the HKAO can only be demanded from a claimant or, in accordance with s2(1) (Claimant - includes a person who make a counterclaim) from a counterclaiming respondent. There is no powder for an arbitrator to make ...
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